Banking Pay - a better solution

Politicians and Media Pundits in several countries are currently discussing ways to control pay in the banking industry. Discriminatory laws aimed at the industry will only lead to more and more detailed interference in the market and create all sorts of counterproductive distortions (The Cuban Economic Model as final destination). A much more effective - and simpler - solution would be to focus on implementing much-needed banking reform. Controls on balance sheet risk and exposures would do much to prevent a future bank crisis and also limit the fallout if a bank fails - as has to be allowed to happen in a free enterprise system. A side-effect would be that commercial banking would become less profitable and this would automatically limit 'excessive' compensation of banking executives.